Investment interest in Drone Delivery Canada is so intense, the company had to increase the terms of its bought deal offering just hours after it first was announced.
On March 6, the company announced financial services firm GMP Securities L.P. would purchase six million units of the company at $1.20 per unit, for gross proceeds of $7.2 million.
Later the same day, citing “strong demand,” the company updated the offering to 8,350,000 units for gross proceeds of up to $10,020,000.
GMP Securities L.P. also has the option to arrange for the purchase of up to an additional 1,252,500 units, within 48 hours before the deal’s closing, for the gross proceeds of $11,523,000.
The deal is expected to close by March 25.
DDC said it would use the net proceeds from the offering to continue development on its drone delivery logistics platform, scale the management and sales team, provide additional resources for the commercialization rollout, work on new projects, and contribute to working capital and general corporate purposes.
The Vaughan, Ont., company launched its latest drone, the Condor, in February. It’s capable of carrying 400 pounds of payload and travelling 200 kilometres. Testing of the Condor is expected to start in the third quarter of 2019, which is around the same time the company plans to open its new 16,000-square-foot operations centre.
Drone Delivery Canada is focused on bringing new delivery solutions to remote and Northern communities more efficiently and at reduced cost than through standard transportation methods.